GS-1. GS-2.. GS-4.. GS-7_. GS-9.. GS-11. GS-12. GS-13_ GS-14. GS-15 One category which could not be matched with a specific GS grade. Since the two sets of averages are nearly identical, the arithmetic average is used, because it is simple in concept and application. A consistent and logical Classification Act pay line is fitted to the arithmetic grade averages. A line of ideal internal alinement passed too far below the averages at some important recruitment levels and too high above at other grades. A line of modified internal alinement fitted better. There were no nationally representative salary data for grades above GS-15. The rates at these grades were determined by extension of the line on the basis of the internal alinement principle. The upper end of the line thus derived was then tested against the rates found in the 1960 Civil Service Commission study of 21 large companies, and the line was found to run well below rates paid in these companies. The Commission study had found that the 21 companies' pay rates for a majority of the positions studied at each level fell within these brackets: Classification Act grade for equivalent responsibilities: GS-16.. GS-17- Pay bracket for majority 1 1 Minority of jobs paid above or below these ranges were about equally distributed between those above and those below. CLASSIFICATION ACT PRIVATE ENTERPRISE EQUIVALENT SALARY SCHEDULE The Classification Act salary schedule at levels comparable to salary levels in private firms was constructed by adopting the rates on the private enterprise equivalent pay line as the fourth rates of corresponding Classification Act grades, because BLS reports average salaries (including salaries of people with both long and short service in job categories); Fourth rate of grade best represents similar average rates of Classification Act employees. The schedule was developed from the fourth rates, using the withingrade structural features of an entry rate and nine increases of 3% percent each. EXTENDING PRIVATE ENTERPRISE EQUIVALENT SALARIES TO OTHER FEDERAL SYSTEMS The BLS survey furnishes private enterprise salary data for occupations representative of the Classification Act. The special types of positions under other statutory salary systems have few, if any, counterparts in private firms. The principle of Federal salaries comparable to those in private employment was extended to other Federal systems by linking several key levels of each system with equivalent Classification Act grades. Linkage is based in most cases on an evaluation of duties, responsibilities, and qualification requirements at key levels of other systems and a determination of their appropriate GS grades under the Classification Act. It also takes into account other factors which should affect pay, such as opportunities for advancement, career patterns, and special requirements of the service concerned. All linkages were concurred in by the Bureau of the Budget, the Civil Service Commission, and the department or agency concerned. For each key level thus linked with a Classification Act grade, the fourth salary rate of the GS grade was adopted as the fourth rate of the linked level; or a GS grade's single rate became the single rate of the related level in the other system. Salary rates for other levels of the system concerned were developed in accordance with the internal alinement suited to conditions and needs of the specific service. III. THE PRESIDENT'S LEGISLATIVE PROPOSAL MAJOR FEATURES OF PROPOSED BILL The bill would Place statutory salary schedules on a basis of comparability with private enterprise salary levels. Improve the salary structures of statutory systems. Provide needed flexibility for salary administration. Bring under the appropriate system a number of positions now paid at special statutory rates. To avoid undue budgetary and economic impact in any one year, private enterprise equivalent salary levels would be brought about through a three-phase program. The bill provides three salary schedules for each system, effective in January 1963, January 1964, and January 1965, respectively. Annual cost increases under the 3-year program and under the first phase effective January 1963, in millions of dollars: Changes in national salary levels before the second phase and the third phase would be taken into account in the President's annual recommendation to Congress under title I of the bill. Structural and other reforms would become effective in January 1963. TITLE I.-POLICY AND IMPLEMENTATION A statutory controlling policy: Federal salaries would be based clearly on the principles that (a) There shall be equal pay for substantially equal work, and pay distinctions shall be maintained in keeping with work and performance distinctions; and (b) Federal salary rates shall be comparable with private enterprise salary rates for the same levels of work. Implementation would call for Systematic annual review of salaries: The President would be required each year To have prepared for him a report comparing Federal salaries with those in private enterprise as shown by annual surveys of the Bureau of Labor Statistics. After seeking views of employee organizations, to report to Congress this comparison, with any recommendations for revisions in salary schedules, structure, or policy that he deems advisable. Special rates to meet special needs: To enable the Government to compete for well-qualified personnel under all circumstances, the President or an agency he designates would be able to establish special rates when exceptionally high private enterprise rates in an occupation or a location handicap the Government's recruitment or retention of well-qualified personnel. The entire rate range of the grade could be increased, an improvement over the present section 803 of the Classification Act which permits raising only the entrance rate. The new minimum rate could not be any higher than the maximum shown for the grade in the statutory salary schedule. Policy control by the President over the functions and regulations of the Civil Service Commission and the departments with respect to statutory salary systems. TITLE II.-CLASSIFICATION ACT REFORM This title prescribes three salary schedules effective in January 1963, January 1964, and January 1965, respectively. Appendix 1 includes an analysis of the three schedules and a copy of each. Salary increase during the three phase program would Be greater at the higher than at the lower grades. For example, 3.7 percent at minimum of GS-1, 9.1 percent at GS-7 fourth rate, 24 percent at GS-15 fourth rate, and 32 percent at GS-18. An inescapable feature of the salary reform, as higher grade salaries have been allowed to lag farthest behind national levels. Upper Federal salaries now lag behind those of many State and local governments and universities, as shown in appendix 3. Provide a minimum increase of $120 (in first phase, $40). Average 11 percent (in first phase, 4.6 percent. Structural reforms would Regularize most of the differences between salaries at successive grades. As a general pattern, percentage differences between grades would decrease slightly going up the schedule. Substantial relief for present compression between top and bottom salaries. Add two new grade levels, GS-19 and GS-20, primarily for high-ranking bureau director and other positions now paid specific statutory salaries under Executive Pay Act or other laws. Personal action of President, after Civil Service Commission recommendation, necessary for a position to be placed in new grades. Establish uniform 30-percent salary ranges for all except top five grades. Entry rate and nine step increases of 3% percent, sufficient to serve as material incentives. Current longevity rates would be retained but absorbed within new range for each grade, thus removing unnecessary now-existing restrictions on their use. Revise existing length-of-service requirements for within-grade increases. One year for each of first three increases, 2 years each for next three, 3 years each for final three. Increases most frequent when proficiency on job normally increases most. Increases would extend over 18 years, covering longest periods Classification Act employees spend in a given grade. New provisions for improved pay administration wouldPermit merit increases, not oftener than once a year, under Commission regulations To reward and encourage high-quality performance. To match established practice in private enterprise. Authorize, under Commission regulations, appointing individuals with extra qualifications at salaries above minimums of grades To help attract high-quality personnel to Federal service. Authorize, under Commission regulations, raising the rate of a supervisor to any rate of his grade necessary to exceed the rate of a wage-board employee under his supervision. Some such cases could be expected, even under private enterprise equivalent salary schedules. Remove numerical limitations on GS-16, GS-17, and GS-18. Such limitations are inconsistent with principle of equal pay for equal work and pay distinctions in proportion to work distinctions. Existing special agency authorities would thereby become unnecessary and would accordingly be repealed in this title. |